Business financing: how to talk with banks

When you go to the bank to ask for funding, you may be able to present yourself with :

  • a fluctuating turnover trend ;
  • knowledge only indicative of your financial needs;
  • a modest capitalization;
  • the need to renegotiate outstanding bank debt ;
  • request for credit for new projects or projects already started.

Most often you find :

  • difficult access to credit ;
  • an ever increasing demand for guarantees ;
  • modest valuation of the new capital introduced into the company, considered more a guarantee for obtaining repayment of the loans than a reason for improving creditworthiness;
  • the request for more qualitative and prospective information.

In short, you have difficulty talking to the bank and getting to a meeting point between your need for financing and the need for the bank to have sufficient guarantees to repay the loan

Present yourself with the party dress

To get out of this impasse in the bank-business relationship it is necessary to better identify the financial needs of your company and present yourself in an appropriate way to facilitate the dialogue with the bank interlocutors.

Similarly when you present yourself to a potential customer or supplier, even towards the bank you must first of all demonstrate that you want to act for business continuity , explain that the company has the resources and characteristics to stay on the market, which the property believes in the company and will continue to invest, there are skills for the growth and development of the business. So, the first step in establishing a proper dialogue with the bank is to introduce yourself with the party dress.

What reputation do you have on the market?

Also, do not forget to check what reputation you have on the market . Banks, customers, suppliers and, more generally, third-party lenders ask themselves if you are reliable, and what do you do to prove it?

Self-assessed, identify your needs and presented in a credible and transparent way to the market. This is the first step towards a conscious management of your commercial and financial relationships and Cerved’s Credibility can help you.

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